The Effect of the Consumer Price Index, GDP and Human Development Index Against Minimum Wage in Kediri City

This study aims to analyze the effect of the Consumer Price Index (CPI), Gross Domestic Product (GDP), and Human Development Index (HDI) on the minimum wage in Kediri City. Using a quantitative approach with secondary time series data from relevant government institutions, the research employs multiple linear regression analysis to examine the simultaneous and partial influence of the three independent variables on minimum wage policy. The findings show that CPI, GDP, and HDI together have a significant impact on the determination of the minimum wage. CPI fluctuations, which reflect changes in the cost of living, strongly affect wage adjustments, while GDP growth does not consistently translate into higher minimum wages. Similarly, improvements in HDI, although indicating better quality of life, are not yet aligned with wage increases. These results highlight the need for a more responsive and balanced wage policy that considers economic and social development indicators to ensure worker welfare.